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(1)Ramu applied for post of the director in an organisation. A resolution appointing him was passed , but it was
communicated to him through his neighbour who was the part of the delegation appointing him. There was no
official communication to him. Later on the resolution appointing him as director was cancelled. Ramu claims
damages. Correct legal proposition in this case is:

(a) Ramu cannot claim damages as he has not resigned from his previous position so has not suffered any loss.

(b) Ramu can claim damages as resolution once passed cannot be rescinded.

(c) Ramu cannot claim damages as there was no official communication.

(d) Ramu can claim damages as the neighbour informing him was a part of official delegation

appointing him and so communication from him amounted to official communication.

(2)The railway authorities allowed the train to be over crowded. As the train was over crowded Mr. X, a
passenger who was with ticket got his pocket picked. Can he sue the railway authorities be sued for loss?

(a) Mr. X can sue as he was travelling with ticket so he had contract with railway for safe travel

(b)Mr. X cannot sue as Railway compartment has conspicuous snotice Yatri apne saman ki suraksha swaying
karein and so railway was not responsible for his loss of goods.

(c) Mr. X cannot sue as his loss of goods was no violation of his legal right so he has no right to sue.

(d) Railway is taking ticket money so it is under responsibility to see that trains do not get over crowded and
railway is responsible for loss of purse due to its negligence.

(3)The goods were booked to be carried by railways from Mumbai to Patna. One term in the contract limited the
liability of railways to half the price of goods damaged or lost.

(a) The term is valid as railway does contract with many parties so it has a readymade term formulated so it is
right

(b)There are many contracts done by railway at a time and damage of goods are happening in great scale so it
can only pay 50% and this term is right.

(c)The railway is an government enterprise and it is free to determine the rate payable in case of damage or loss
of goods. And it is valid.

(d)The term is invalid as it does not give full price of the goods lost and gives only 50%.

(4) A minor mortgaged his house to secure a loan from a money lender of Rs. 50,000. Sum of Rs. 30,000 was
advanced. Now the minor applies for cancellation of mortgage and the moneylender demands his advance back.

(a) Moneylender cannot get his advance back as ccontract with minor is no contract and so there is no obligation on the
minor.

(b) Money lender can get his money back as mortgage is being cancelled.

(c) Money lender will get the money back as the minor cannot be allowed to gain rs. 30,000 simply because he
is a minor.

(d)Money lender can get the money back as minor has given wrong information about his age.

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(5) A minor mortgaged his house for a loan amount of Rs.50,000. He got Rs. 30,000 as advance. While making
the contract of mortgage he said to the money lender that his age is 20 years. Believing it money lender entered
in a contract. Minor applies for cancellation of contract and and refuses to pay back the amount. Can money
lender get back his amount?

(a) Money lender can get back his amount as minor has given wrong information about his age.

(b) Money lender cannot get back his amount as contract with minor is void ab initio

(c) Money lender can get back the amount as the mortgage is being cancelled.

(d) Money lender can get back the amount as minor cannot be allowed to benefit from others money simply
because he is a minor.

(six) A horse was bought for a certain price coupled with a promise to give Rs. 500 extra if the horse is proved
lucky.

(a) This is a valid agreement.

(b) This is not a valid agreement as if the horse is proved lucky is not capable of ascertainment.
(c) The agreement to purchase a horse is valid but the term relating to payment of Rs.500 is not valid and
the rest part is valid.
(d) The contract is a contingent contract which dependsuon the horse proving lucky and is a valid contract.

(7) X arranges his birthday party at his home and his friend Y promises to come to his house and prepare a
special dish. He neither comes on his birthday nor prepares any special dish.

(a) X can sue Y for breach of promise as X has incurred expenses in organisation of birthday party on
promise of Y.

(b) X cannot sue Y for breach of contract but can recover the amount of expenses.

(c) X can neither sue for breach of contract nor can recover any damage as there was no legal obligation to
perform.

(d)X can recover the money on proof of sufferance of loss.

(8) A wallet is stolen by a thief. Aggrieved person files an FIR and also announces the reward of Rs. 500 to
the finder of the purse. Domestic servant of a police officer finds the purse and claims reward. Will he
succeed

(a) If yes why?

(b)If no why?

(9) X a man convinces a girl to sell her land to him at a certain price. She is 18 years old and mother is her
garduain. The girl sells the land to X without information to the mother. Validity of the sale is challenged.
Decide.

(a) The contract is valid as consideration is paid.

(b)The contract is valid as both the parties are above 18

(c)The contract is invalid as it is done without the consent of the guardian i.e. mother of

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the girl.

(d)None of the above.

(10) A business man X goes to the church and makes ac commitment before a gathering at the church If the
world does not end on 21st October he will donate 90% of his property to the church. On 22nd October when
he wakes up the world has not come to an end but he suffered losses in normal course of business. Church
plans to take his 90% property on basis of promise made by him. Decide.

(a) X can apply the doctrine of frustration as he has suffered losses and his liability to fulfil the promise.

(b)X can take the defence that he was overpowered by fear when making promise in the church and was not
in a stable state of mind when he made promise and hence incurs no liability.

(c) As X has already made the promise so now he cannot back out from the promise and he will have to
donate 90% of his property to the church.

(d) Essential part of promise was ending of the world which may still happen and date is irrelevant so he
does not need to fulfil the promise.

(11)A couple has got an insurance policy which takes up the responsibility to indemnify in case of health
hazard. Wife delivers a healthy baby at a hospital and delivery is normal. Couple claims hospital bills from
the insurance company. Decide.

(a) Insurance company need not pay as delivery is normal.

(b) Insurance company needs to pay as couple has incurred expenses which is to be indemnified.

(c) Health hazard is an ambiguous term which is not capable of being assigned any definite meaning so the
contract is not enforceable.

(d) None of the above.

(12) A and B are two brothers aged 14 and 17. A got admitted in Doon school and applies for a loan of Rs.
10,000,00. B acts as a guarantor for a against the loan and submit the title deeds of property with the bank.
Bank advances the loan. After four years when A completes his education bank demands back the loan from
A which he refuses. Bank demands it from B. B also refuses citing that he was a minor at that time of
making the contract and hence has no liability to pay. Decide.

(a) As B was the guarantor he has to repay or Bank can realise the amount by saling his property.

(b) At the time of payment both A and B have become major so they have to pay.

(c) As loan was advanced for necessity of the minor i.e. education so contract is valid and loan amount has
to be repaid.

(d) Education is necessary but not in Doon school which is very costly so some part of loan which is
reasonable for expense in education has to be repaid and not the whole amount.

(13) A is being indebted to B of which a part has been paid till now. A plans marriage of his daughter and
requires more loan . B agrees to advance the loan at the rate of 75% per anum on the fresh loan advanced as
well as on the remaining amount of the previous loan. A agrees as marriage is just after fifteen days. Decide.

(a) A has to pay the loan at agreed rate as he has consented to it.
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(b) A has to pay 75% interest only on new loan and not on first loan as first loan was

taken at different rate.

(c) A has to pay previous loan on agreed rate and new loan on reasonable rate of interest as 75% is too
high rate of interest which has been agreed due to compulsion of marriage of daughter .

(d) A has to pay only previous loan at the previously agreed rate and contract for second loan is voidable at the
option of A.

(14) X a NRI enquired through a broker for purchasing a flat within half kilometre radius of Boring Road
crossing. Broker finalised the deal for a flat beyond 1 km radius of Boring Road crossing. Believing it to be
within half kilometre radius from Boring Road crossing X purchased the flat and made the payment. Decide.

(a) As flat is purchased and payment made so the contract is valid.

(b) Flat is out of half kilometre radius so there is no agreement on the same thing in the same sense and the
contract is void.

(c) Broker misrepresented that the flat is within half kilometre by not clarifying the distance from Boring Road
crossing and misrepresentation makes the contract voidable at the option of X.

(d) Both B and C.

(15) A an agent misrepresents to X the buyer of the property that property is free from any encumbrancesand X
buys the property. Later on it was found that property was subject to a mortgage and loan has to be repaid to
become the owner of the property. Option available to A is

(a) To avoid the contract on ground of misrepresentation and fraud and recover the damages.

(b) To continue the contract and pay back the loan to make property free from mortgage and demand back the
amount of loan paid along with damages.

(c) Either (a) or (b)

(d) Neither (a) nor (b)

(17) Under Muslim law marriage is a contract. When prospective brides father enquired about the prospective
grooms income it was said to be 15 lakhs in Indian currency and his designation was told to be of mechanical
engineer in Dubai. In fact he was a manager of a tea estate in Dhaka and earning 15 lakhs according to currency
of Bangladesh which amounted to 7.5 lakhs in Indian currency(conversion rate is imaginary and not real). Can
contract of marriage be avoided? Decide.

(a) yes, as it amounted to fraud from the side of groom.

(b) No, as salary is not an essential fact for contract of marriage so misrepresentation of salary does not make
the contract voidable.

(c) contract of marriage can be avoided only if the father of the girl agrees as he is the party to a contract.

(d) contract can be avoided if only the girl wants so as she was the party to the contract along with groom andit
depends on her decision alone.

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